Distribution: Negotiating A Deal

Kevin McCallister

Well-known member
Hey Everyone.

So, here's the scoop. By now, you may have seen some of the threads for stills or the trailer for my DVX-lensed full-length horror feature, "Plasterhead". You can check out the website here: http://www.plasterheadmovie.com and our Myspace site here: http://www.myspace.com/plasterheadmovie

Anyway, the film is now finished and we are ready to start pursuing distribution and negotiating a deal. We have all our paperwork squared away; music releases, actor contracts, copyrights, etc. What we AREN'T sure of is...where do we begin?

We already know some of the companies that we will be approaching. Lion's Gate Home Entertainment. Maverick Entertainment. We also know that we need a lawyer. My question is, at what part of the equation does the lawyer come into play? Can we approach these companies on our own and provide them with screeners? My first impression (and this may be 100% wrong) is that the lawyer is only needed once we have an offer on the table, to look over the deal and the paperwork that comes with it. How off-base am I?

We also can't afford to pay a lawyer hourly...but I have heard that some will work for a percentage of the final deal. Anyone have any experience with this? I've gotten a lot of helpful answers already from Dave (mediamogul) and his filmmaking podcasts, but there is still so much left to know. ROKOKO, you went through this process with "Limbo" (and posted a wonderful thread on it, as well), but can anyone offer a more in-depth walkthrough of the process? I feel like this is one area where it's quite easy to screw yourself, and I want to make sure I step on all the right stones.

Thanks for any help/advice in advance!
 
do you have E&O insurance? errors and omissions...maybe the distributor will front that, but i'm under the impression you need that first before you approach a distributor.

My first impression (and this may be 100% wrong) is that the lawyer is only needed once we have an offer on the table, to look over the deal and the paperwork that comes with it. How off-base am I?

that's kinda right...you'd need an entertainment lawyer...however i've been a member of the american federation of musicians and for members lawyers are free :) don't know if writer's unions work like that.

oh and just found this...

The producer will need to obtain errors and omissions insurance at the outset of production. Errors and omissions insurance will generally be required for distribution of the motion picture. Losses covered by the insurance generally includes defamation and privacy claims, copyright claims, and unfair competition claims. In order to obtain coverage, it is necessary for the rights to be examined by counsel. This generally means having the script carefully reviewed and the issues raised by the scripts examined. Potential liability issues in the script must be analyzed and either acceptably explained or rights cleared by obtaining licenses or releases. The underwriter then may either decline to issue an errors or omissions insurance policy in some situations, issue an errors or omissions insurance policy with exclusions, or alternatively charge a higher premium.

from here

and this is a good read...

Contracts for the Film & Television Industry

all that should help your legal standpoint as for all the other negotiating stuff that's up to you and your choices.
 
novelt said:
do you have E&O insurance? errors and omissions...maybe the distributor will front that, but i'm under the impression you need that first before you approach a distributor.

that's kinda right...you'd need an entertainment lawyer...however i've been a member of the american federation of musicians and for members lawyers are free :) don't know if writer's unions work like that.

You can get the distributor to pay for E and O, its very common.

Think about whether you want to persue distribs alone, find a producer rep or an entertainment lawyer that also does distribution.

Most will work for a % of the deal, never pay anything upfront.
 
Thanks for all the responses thus far, guys.

So, at what point do I actually hire a lawyer? Like, can I have a contract on the table from a distributor, and THEN go get a lawyer to look at it?
 
if the lawyer is just going to read over your contract, wait until you get the contract, then work out a flat deal.

If hes going to help get distribution, get him on board asap and work out a % of the deal. Low end % would be 10% , max 25%.

I usually negotiate for 10-12%. They submit your films to distribs, do all the contracts and paperwork.
 
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